9 minute read
Mitch Rales Takes Command of Historic NFL Franchise
Beta Businessman and Philanthropist Takes Command of Historic NFL Franchise
By Justin Warren, SMU ’10
In the world of professional sports, team ownership often carries an air of mystique. These owners can shape the destiny of a franchise for better or worse. Such was the case for the Washington Commanders, a storied NFL team plagued by a nearly quarter century of tumult and scandal under the eye of Dan Snyder.
All of that changed in July 2023, however, when businessman, philanthropist and native Washingtonian Mitch Rales, Miami ’78, assumed partial control of the league mainstay, and in so doing ushered in a new era of optimism and hope for sports fans in the nation’s capital.
Meet Mitch
Born August 21, 1956, Mitch Rales enjoyed a modest upbringing in the suburbs of Washington, D.C., learning the values of hard work and determination from his father, Norman, who became a successful entrepreneur. That early exposure to lessons on business and ethics would shape Rales’ future in profound ways, including his decision to enroll at Miami University where, on October 27, 1975, he joined the Alpha Chapter of Beta Theta Pi and graduated three years later with a degree in business administration.
Upon completing his education, Mitch, along with biological and fraternal brother Steven, DePauw ’73, ventured into the business world. In 1984, they co-founded Danaher Corporation, which specializes in manufacturing medical, industrial and commercial products. As leaders, the pair have acquired more than three dozen companies and turned Danaher into a Fortune 100 science and technology firm with $31.5 billion in revenues.
Rales’ success in the corporate world is often attributed to his innovative thinking, competitive spirit and a relentless focus on quality and customer satisfaction. He’s known for a hands-on approach and a commitment to continuous improvement – principles that will no doubt influence his time and strategy as he sets out into the world of professional sports.
Beyond The Gridiron
Citing their modest, middle-class backgrounds, in 2019 Emily and Mitch Rales pledged to give the majority of their wealth to philanthropy. They have donated billions of dollars in support of the arts and education, including to found and operate Glenstone, an art museum in Potomac, Maryland, with an endowment on par with New York City’s Metropolitan Museum of Art.
For Sport
A star high school athlete who captained the football and baseball teams, Rales is not new to sports broadly. One of his former teammates told The Washington Post in 1988 that “Mitty” had a go-for-broke batting style. “He would always go for the home runs and swing for the fences,” he recalled. Throughout his life, as “Mitty” has given way to Mitch, Rales’ tenacity and ambitions have persisted.
The Rales family is, likewise, not new to sports ownership. Norman, the family patriarch, at one time held an ownership stake in the Texas Rangers baseball franchise, and Steven, the oldest of the Rales brothers, reportedly mulled a purchase of the then-floundering San Francisco Giants in the mid-1970s. Buying the Commanders isn’t even Mitch’s first foray into the sports scene as he at one time reportedly considered making a play for a stake in the Baltimore Orioles alongside the team’s current owner, Peter Angelos. Though that never materialized, Mitch and Steven did bring the first sports-only radio station, WTEM, to Washington in the 1990s – a venture that, as fate would have it, was eventually taken over by Dan Snyder, the Commanders’ now-beleaguered former owner.
The Rise And Fall Of Washington
Dating back to its inception in 1932, the Washington Commanders – previously the Boston Braves and Washington Redskins –is one of the NFL’s crown jewels. Its more than 90 years of history have produced nearly 20 Hall of Famers, five league championships, 15 division titles and 25 playoff appearances.
When Dan Snyder purchased the team in 1999, dedicated fans hoped that legacy would continue. However, during Snyder’s tenure the team never won another Super Bowl, or even made it to another conference championship game. The football team experienced an arguably unprecedented fall from grace during his 24 years of ownership, not only on the field but in courts and all the way up to the U.S. Congress, prompting calls far and wide for the team to be sold. As The New York Times put it in July 2023:
"By the time he agreed in principle to sell the Washington Commanders Snyder was ravaged by scandals which drew NFL investigations and legal inquiry. The formerly brash, big-spending owner had been pressured into changing the team’s name and logo, buying out his partners and, eventually, to awaken from a dream which had turned into a nightmare for many."
A Record-Setting Purchase
For months in early 2023, speculation ran rampant about whether a sale would take place at all and, if it did, who Snyder’s successor would be. The list of names included giants of industry, from Amazon’s Jeff Bezos to rapper Jay-Z.
By March, though, two fully financed bids for the team – each meeting Snyder’s $6 billion asking price – had been officially submitted. One came from Canadian billionaire Steve Apostolopoulos, the other from a consortium led by Josh Harris, co-owner of the NBA’s Philadelphia 76ers and NHL’s New Jersey Devils.
Harris, who grew up in nearby Bethesda, Maryland, didn’t have the ability to close the deal alone. To bring it to fruition, he brought aboard several other investors, but most notably another capital-area local – Rales, whose net worth in 2022 was $5.8 billion, according to Forbes – and NBA basketball legend Earvin “Magic” Johnson.
On July 21, 2023, the Harris group closed the $6.05 billion deal, making it the highest price ever paid for a North American professional sports franchise.
All Out Blitz
The Harris Ownership Group (above) came out victorious, but other personalities pursued the historic football franchise.
Byron Allen - Comedian; Television Executive
Jeff Bezos - Founder, Amazon; Owner, Washington Post
Shawn Carter (Jay-Z) - Rapper, Record Producer and Entrepreneur
Michael Dell - Founder, Dell Technologies
Kevin Durant - Player, NBA’s Phoenix Suns
Behdad Eghbali - Co-founder, Clearlake Capital; Co-owner, Chelsea FC
Larry Ellison - Co-founder, Oracle Corporation
Jose E. Feliciano - Co-founder, Clearlake Capital; Co-owner, Chelsea FC
Ted Leonsis - Owner, Washington Capitals/Wizards/Mystics
Matthew McConaughey - Actor; Owner, Austin FC
Source: Washingtonian
Betas On Top
To make the purchase official, the transaction required approval from the league’s other 31 team owners. The decision was unanimous, which means Rales received early support from two of his Beta brothers: the Jacksonville Jaguars’ Shahid Khan, Illinois ’70, and Cincinnati Bengals’ Mike Brown, Dartmouth ’57.
Rales now joins Khan and Brown as the league’s third Beta team owner, accounting for nearly 10% of the entire league. Historically, the large Nordstrom Beta family from the University of Washington owned the Seattle Seahawks from 1976-1988.
Khan offered his congratulations on Rales’ successful bid:
"The entire National Football League community will long benefit from the character and leadership that Mitch brings to the Washington Commanders. I am proud to welcome him to the NFL ownership family, and even more so knowing we share the bond of Beta Theta Pi. The values instilled in me through Beta continue to serve me in both business and in life, and I am confident Mitch’s experience has been no different."
An Eye To The Future
Rales is now thrust into the spotlight as a team owner. During his opening press conference, he recalled taking a bus to home football games with his three brothers from the Friendship Heights neighborhood of Washington, D.C., to the historic Robert F. Kennedy Memorial Stadium. His nostalgia and enthusiasm inspired hope that the Commanders’ legacy was in good hands. “We’re here to build this again from the bottom up by engaging everybody in a passionate, inspiring way,” Rales said. “We are here to ignite the communities we serve by winning championships.”
Upon taking the helm, Rales and his partners immediately set out to usher in a new era for the Washington Commanders – one that is intentional about culture and stresses zero tolerance for “ethically challenged behavior.”
Recognizing the team’s historical importance, Rales and his fellow investors pledged to support initiatives and outreach programs to create an environment where the team is once again seen as a community asset that fosters pride and unity among Washingtonians.
Knowing a potential new stadium deal is on the horizon, Rales and his fellow owners also committed $40 million to upgrade the team’s current home, FedEx Field, to enhance the fan experience and provide more comfortable conditions for players.
And on the matter of the team name, which the team could consider changing once again under this new ownership, Rales says definitively it will not revert back to the nickname it held from 1933 until 2019. “That ship has sailed,” he said. “We’re not going to relitigate the past We’re about building the future and not having a divisive culture.”
The Future Of The Washington Commanders
As Rales and his colleagues look to revitalize the franchise, one thing is clear: Though long-term success will be judged on the field, hopes are high. An estimated 5,000 people attended an event last summer to celebrate the new ownership group. “I’ve waited seven years to see the fan base like this,” Commanders tackle Jonathan Allen told the crowd.
For team supporters who have endured a grueling stretch of disappointments, though, many rightfully question if Rales is committed enough to steer this latest venture through to success.
If he’s half as committed to his hometown Commanders as he is to his Fraternity, the answer is a resounding “yes.”
When the Miami chapter launched its Forever Alpha Campaign to reestablish the chapter’s membership and renovate its historic home in 2017, alumni approached Rales asking for his support. “The most important experience that I had in my years at Miami happened at [the Beta house],” Rales said. And with that, he made a $100,000 gift and pledged an additional $200,000 in matching gifts.
If success is a passionate leader willing to do what it takes for the causes he loves, Beta can attest that the Washington Commanders are in good hands.
